Articles

Could High Drug Prices Be Bad for Innovation?

Industry leaders argue that high prices are necessary for innovation, but just how high do prices need to be?
Originally published on 10/23/2014 in Forbes: Cancer

Policymakers have been scrutinizing high drug prices like never before, and a series of six figure drugs are to blame.

The pharmaceutical industry has responded by stating these high prices are necessary to fuel the fire of innovation. But when does the potential to profit exceed that which is needed to drive innovation and pervert the market? Dr. Bach thinks we're already there.

Read the full article here.

Share

Research & Insights

We conduct non-partisan, independent research, and make our work accessible and informative to policymakers and the general audience alike. Browse our featured research or explore our work by article type.

R&D Costs Do Not Explain Elevated U.S. Drug Prices
Drug prices in other high income countries for the 20 top selling drugs globally make up less than half of U.S. net drug prices.
HA Blog 03/07/2017
Could High Drug Prices Be Bad for Innovation?
Industry leaders argue that high prices are necessary for innovation, but just how high do prices need to be?
Forbes: Cancer 10/23/2014
Unpronounceable Drugs, Incomprehensible Prices
Cancer drug prices continue to rise. Just how much can pharmaceutical companies charge?
Forbes: Cancer 08/13/2014
Production Plus Profit Pricing (P-quad) FAQ
08/17/2021
What A Waste! The National Academy Of Medicine’s Report On…
Why Congress should not follow the National Academy of Science, Engineering, and Medicine’s recommendation to remove the JW modifier.
Health Affairs Blog 07/09/2021
Medicare Must Study Unproven, Expensive Alzheimer’s Drug
Medicare cannot indiscriminately cover the cost of Aduhelm for the treatment of Alzheimer's disease without first evaluating whether it truly works.
Bloomberg Opinion 06/15/2021
Value-Based Management of Specialty Drugs: Practical Considerations and Implications for…
Not all approaches are suited to meeting policy makers and health plans’ goals of managing specialty drugs based on their value. Researchers conducted a qualitative study with Blue Cross Blue Shield plans interested in implementing value-based specialty pharmacy management to observe the plans’ objectives, strategies, and factors influencing their ability to execute on these strategies.
AJMC 05/13/2021
The Drugs at the Heart of Our Pricing Crisis
The US drug pricing system is broken, but not irreparable. For large-molecule biologic drugs, enter: Production Plus Profit Pricing (P-quad, pronounced like Ahab's seagoing vessel).
NYTimes 03/15/2021
Biosimilars: Market Changes do not equal policy success
Numerous articles and reports have trumpeted biosimilar market growth, but it's critical we do not lose sight of the sole objective for creating the biosimilar market: to reduce the cost of older biologic drugs for society and taxpayers.
Drug Pricing Lab 03/15/2021
Instead of debating 'first-shot' vs 'set-aside' vaccine approaches, hospitals' study…
Hospitals could start studies of their own employees to answer important questions, including whether the first-shot approach has downsides when compared to the set-aside strategy.
STAT 01/04/2021
After 4 Years of Trump, Medicare and Medicaid Badly Need…
Many promising ideas won't work as expected, and that's all the more reason for CMS to evaluate how medical care is delivered to its patients.
NYTimes 12/01/2020
Trump's Drug-Pricing Ideas Would Cost Taxpayers a Bundle
Meanwhile, pharmaceutical companies would stand to make a lot more money.
Bloomberg Opinion 09/29/2020
Newsletter

Stay up to date on our work and news